Why Opendoor Stock Popped Today
Key Points
Opendoor is cutting costs and accelerating its transaction times.
The company is on track to achieve its profit targets.
- 10 stocks we like better than Opendoor Technologies ›
Shares of Opendoor Technologies (NASDAQ: OPEN) rose on Friday after the online home-selling platform showed progress toward achieving profitability.
By the close of trading, Opendoor's stock price was up more than 7% after rising as much as 20% earlier in the day.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Image source: Getty Images.
Executing the plan
Soon after Kaz Nejatian, the former chief operating officer of e-commerce leader Shopify, took over as CEO of Opendoor in September, he laid out his strategy to turn around the struggling real estate platform.
"Last quarter, we outlined a four-step plan to transform Opendoor: reach breakeven adjusted net income by the end of 2026 on a 12-month go-forward basis, drive positive unit economics while increasing transaction velocity, transition to direct-to-consumer relationships, and expand our product suite," Nejatian said.
Opendoor's fourth-quarter results demonstrate significant developments toward those goals. Its home purchases jumped 46% from the prior quarter. At the same time, the percentage of homes on the market over 120 days fell to 33% from 51%.
Opendoor also improved its cost structure. Fixed operating expenses declined to $35 million, down from $37 million in the third quarter and $43 million in the year-ago period.
"These results reflect structural improvements in how we operate with more accurate pricing, faster inventory turns, and disciplined selection," Nejatian said.
Profitability goals remain on track
Opendoor reiterated its intentions to achieve positive adjusted net income on a 12-month go-forward basis by the end of this year.
"While our newer cohorts are still early in their sell-through, we like what we see," Nejatian said.
Should you buy stock in Opendoor Technologies right now?
Before you buy stock in Opendoor Technologies, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Opendoor Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $415,256!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,151,865!*
Now, it’s worth noting Stock Advisor’s total average return is 892% — a market-crushing outperformance compared to 194% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of February 20, 2026.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Shopify. The Motley Fool has a disclosure policy.
Recommended Articles
